What is Mainnet in Cryptocurrency? | Cryptocurrency Mainnet Explained
Every blockchain has mainly two networks:
Testnets are able to show a sort of working prototype for blockchain projects. However, mainnets are a greater integral aspect of valuing a cryptocurrency’s real-world implementation.
What is a Mainnet?
Mainnet actually carries out the functionality of transferring cryptocurrency from senders to recipients. Launching of Mainnet is actually making the blockchain open to public. The main network wherein actual transactions take place on a distributed ledger; this is in contrast to the testnet, or test network, where new Dapps and EDCCs can be tested and developed. This is different from a testnet, which is the network used before launching the project to test all the functionality.
Mainnets are the actual “end product”, which is available for the public to use. However, just like testnets or code frameworks, mainnets can be changed whenever project teams or cryptocurrency open-source communities decide there is a need for updates and/or revisions.
The testnet is used by developers for testing. Testnet coins are separate and distinct from actual mainnet coins, and are never supposed to have any value. This allows application developers testers to experiment, without having to use real mainnet coins.
Investing in a Project Without a Mainnet
Not all projects have mainnets when they launch and sell their ICO’s. A lot of projects don’t even have a testnet prepared during the ICO period. However, in the ideal world this shouldn’t be the case.
If seen from an investor’s perspective, the mainnet is a sign of that the project is live and is being in technical progress. Even if you don’t want to invest in a project before the mainnet launch, it’s important to realize how a mainnet can have a positive impact on a cryptocurrency’s value. Many investors choose to buy cryptocurrencies in advance of a mainnet because a successful launch can sometimes lead to significant increases in value.
How Does Mainnet Affect Cryptocurrency Prices?
A Lot of factors contribute towards the success of cryptocurrency prices. Mainnet is one of them.
BTC and the Lightning Network: March 2018
Initial mainnets launches aren’t the only factor that drive success of a cryptocurrency project. To keep the cryptocurrency project a wide succes, continuous updates and integrations to the mainnet are also essential.
One recent example was the Lightning Network launch on the Bitcoin mainnet on March 15, 2018. The Lightning Network is an off-chain solution that adds a “second layer” on top of the blockchain. While this project will ultimately try to help all cryptocurrencies scale up, the most important implementation to date is on the Bitcoin mainnet. The Lightning Network is significant because it aims to make BTC a more scalable cryptocurrency by adding the capability to handle far more transactions per second. Without the Lightning Network, BTC at present handles only 7 transactions per second.
However the Bitcoin price didn’t jump immediately after the launch of the Lightning Network mainnet. In fact the value actually decreased from around $10,600 to around $6,900 in the period from March 1 to March 30.
This was because in march the entire cryptocurrency market was going through adverse circumstances due to stringent regulations, crackdown and massive sell offs of several cryptocurrencies. Therefore, it’s difficult to say whether or not the Lightning Network’s launch on the Bitcoin mainnet had any real effect on BTC’s value in the short-term.
Golem (GNT) Mainnet Launched in April 2018
Golem’s Brass Mainnet source code was released on Github on April 10, 2018. The purpose of Golem (GNT) is to offer a P2P system for sharing computing power.
Users who would need extra computing power will have to pay GNT to users on the network who have extra computing power in exchange. From March 31 to April 29, the price did increase from around $0.20 to $0.60. This includes a spike to $0.73 on April 13.
Initially, one would try to infer of a direct correlation between the Brass Mainnet launch and value increase. Market aspects also have to given due responsibility for controlling the price. It’s easy to say that GNT’s value increased at a more significant rate because of the mainnet (especially on April 13), but this is still difficult to conclude for certain.
That’s because a vast majority of cryptocurrencies increased in value throughout April’s bullish market. It could very well be argued that the price would have risen at the same rate simply due to favorable market conditions.
Read full article: Golem Launches Beta Software on Ethereum Mainnet
Upcoming Mainnet Launches
Following are the cryptocurrencies which will release it’s mainnet :
- Oyster (PRL) on 29 May 2018
- Tron (TRX) on 31 May 2018
- Nuls (NULS) on 31 May 2018
- Internet Node Token (INT) on 31 May 2018
- Eos (EOS) on 2 June 2018
- VeChain (VEN) on 30 June 2018
- Ontology (ONT) on 30 June 2018
- Credits (CS) on 30 June 2018
- High Performance Blockchain (HPB) on June 30 2018
- Fusion (FSN) on June 30 2018
- Dadi (DADI) on June 30 2018
- Aeternity (AE) on June 30 2018
- Zilliqa (ZIL) on 30 September 2018, Zilliqa Testnet launch on 30 June 2018
***Update: (19 May 2018) – BitShares mainnet launch is scheduled on 12 June 2018
***Update ( 31 Ausgust 2018):-
- Zilliqa has postponed it’s mainnet launch to end of this year or on January 2019. Click here to read the official announcement on Telegram
- THEKEY (TKY) Mainnet launch on 31 December 2018 or earlier
Mainnets are important in the world of cryptocurrencies as the existence of mainnet gives a proof that the blockchain project is being implemented. Launch of mainnet do affect the price of cryptocurrency either in short term or in long term.
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